3. (10 points) Fitzgerald Industries has a new project available that requires an initial investment of $4.6 million. The project will provide unlevered cash flows of $835,000 per year for the next 20 years. The company will finance the project with a debt-value ratio of .35. The company's bond have an YTM of 6.8%. The information of comparable companies with operations to this project is in the following table. The risk- free rate is 3.8 percent and the market risk premium is 7 percent. The tax rate is 21 percent. Should the firm accept this project? Why and why not? Equity beta Debt value tax rate 1.43 21% $250,000 $0 Book value of equity $500,000 $500,000 $200,000 $500,000 Market value of equity $800,000 $10,000,000 $15,000,000 $1,600,000 Competitor 1 Competitor 2 Competitor 3 Competitor 4 1.08 21% 1.37 21% $1,000,000 $200,000 1.37 21%